Full Press Release Details
UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL
used but not defined in this Exhibit 99.1 shall have the meanings ascribed to them in the Current Report on Form 8-K (the
"Form 8-K") to which this exhibit is attached and, if not defined in the Form 8-K, the definitive proxy
statement/prospectus filed with the SEC on September 14, 2023 (the "Proxy Statement/Prospectus").
the context requires otherwise, all references to (i) "Anzu" refer to Anzu Special Acquisition Corp I prior to giving
effect to the Business Combination; (ii) "Envoy Medical" or "New Envoy" refer to the entity formerly known
as Anzu, which is now named Envoy Medical, Inc., after giving effect to the Business Combination; and (iii) "Envoy"
refers to the entity formerly known as Envoy Medical Corporation.
The following unaudited pro forma condensed combined financial information
and accompanying notes are provided to aid you in your analysis of the financial aspects of New Envoy following the Business Combination,
the PIPE Transaction and related transactions, which are collectively referred to as the "Transactions". The following information
is also relevant to understanding the unaudited pro forma condensed combined financial information contained herein:
| Shares of Envoy Common Stock outstanding as of June 30, 2023 (Historical) | Envoy convertible Preferred Stock into Envoy Common Stock | Conversion of Convertible Notes - related party, carried at fair value and accrued interests into Envoy Common Stock | Net exercise of warrants | Envoy Common Stock equivalents assumed outstanding immediately prior to Closing | ||||||||||||||||
| Common stock, par value $0.01 per share | 139,153,144 | 20,000,000 | 75,973,218 | 42,656 | 235,169,018 | |||||||||||||||
| Envoy Common Stock equivalents assumed outstanding immediately prior to Closing | 235,169,018 | |||||||||||||||||||
| Assumed Exchange Ratio | 0.06378 | |||||||||||||||||||
| Estimated shares of New Envoy Class A Common Stock issued to holders of Envoy Common stock equivalents upon Closing | 15,000,000 |
PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION
UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL
UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL
The unaudited pro forma condensed combined financial information has
been prepared based on the Anzu and Envoy historical financial statements as adjusted to give effect to the Transactions. The unaudited
pro forma condensed combined balance sheet as of June 30, 2023 gives pro forma effect to the Transactions as if they had occurred on June
30, 2023. The unaudited pro forma condensed combined statement of operations for the six months ended June 30, 2023, and the year ended
December 31, 2022, give effect to the Transactions as if they had occurred on January 1, 2022.
The unaudited pro forma condensed
combined financial information has been derived from and should be read in conjunction with:
CONDENSED COMBINED BALANCE SHEET
The unaudited pro forma condensed combined financial information is
for illustrative purposes only and is not necessarily indicative of what the actual results of operations and financial position would
have been had the Transactions taken place on the dates indicated, nor are they indicative of the future consolidated results of operations
or financial position of New Envoy. The unaudited pro forma adjustments are based on information currently available, and assumptions
and estimates underlying the unaudited pro forma adjustments are described in the accompanying Notes to the Unaudited Pro Forma Condensed
Combined Financial Information. If the actual facts are different than these assumptions, then the amounts and shares outstanding in the
unaudited pro forma condensed combined financial information that follows will be different, and those changes could be material.
| (In thousands, except for share data) | Anzu (Historical) | Envoy (Historical) | Transaction Accounting Adjustments | Notes | Pro Forma Balance Sheet | |||||||||||||
| ASSETS | ||||||||||||||||||
| Current assets | ||||||||||||||||||
| Cash and cash equivalents | $ | 133 | $ | 68 | $ | 44,645 | 3(a) | $ | 5,000 | |||||||||
| - | - | (2,987 | ) | 3(b) | - | |||||||||||||
| - | - | (13,104 | ) | 3(c) | - | |||||||||||||
| - | - | 10,000 | 3(e) | - | ||||||||||||||
| - | - | (4,453 | ) | 3(q) | - | |||||||||||||
| - | - | 2,918 | 3(f) | - | ||||||||||||||
| - | - | (2,690 | ) | 3(s) | - | |||||||||||||
| - | - | (24,959 | ) | 3(i) | - | |||||||||||||
| - | - | (4,571 | ) | 3(r) | - | |||||||||||||
| Restricted cash | - | - | 4,571 | 3(r) | 4,571 | |||||||||||||
| Accounts receivable, net | - | 55 | - | 55 | ||||||||||||||
| Inventories | - | 1,306 | - | 1,306 | ||||||||||||||
| Prepaid income taxes | - | - | - | - | ||||||||||||||
| Prepaid expenses and other current assets | 265 | 294 | - | 559 | ||||||||||||||
| Prepaid Forward Purchase Agreement Assets | - | - | 3,100 | 3(q) | 3,100 | |||||||||||||
| Total current assets | 398 | 1,723 | 12,470 | 14,591 | ||||||||||||||
| Investments held in Trust Account | 44,645 | - | (44,645 | ) | 3(a) | - | ||||||||||||
| Property and equipment, net | - | 345 | - | 345 | ||||||||||||||
| Operating lease right-of-use asset (related party) | - | 525 | - | 525 | ||||||||||||||
| Total assets | $ | 45,043 | $ | 2,593 | $ | (32,175 | ) | $ | 15,461 | |||||||||
| LIABILITIES, REDEEMABLE STOCK, AND STOCKHOLDERS' DEFICIT | ||||||||||||||||||
| Current liabilities: | ||||||||||||||||||
| Accounts payable | $ | 1,431 | $ | 2,360 | $ | (1,184 | ) | 3(c) | $ | 1,795 | ||||||||
| - | - | (812 | ) | 3(b) | - | |||||||||||||
| Accrued expenses | 5,124 | 747 | (45 | ) | 3(b) | 806 | ||||||||||||
| - | - | (5,020 | ) | 3(c) | - | |||||||||||||
| Working Capital Loans | 2,690 | - | (2,690 | ) | 3(s) | - | ||||||||||||
| Convertible notes payable, current portion (related party) | - | 676 | (676 | ) | 3(j) | - | ||||||||||||
| Operating lease liabilities, current portion (related party) | - | 148 | - | 148 | ||||||||||||||
| Warranty liability, current portion | - | 256 | - | 256 | ||||||||||||||
| Income taxes payable | 102 | - | - | 102 | ||||||||||||||
| Total current liabilities | 9,347 | 4,187 | (10,427 | ) | 3,107 | |||||||||||||
| Prepaid forward derivative | 145 | - | (145 | ) | 3(o) | - | ||||||||||||
| Forward Purchase Agreement liability | - | - | 11,192 | 3(p) | 11,192 | |||||||||||||
| Deferred underwriting fee payable | 10,413 | - | (10,413 | ) | 3(g) | - | ||||||||||||
| Derivative warrant liabilities | 1,333 | - | (625 | ) | 3(h) | 708 | ||||||||||||
| Convertible notes payable, net of current portion (related party) | - | 55,324 | (50,688 | ) | 3(j) | - | ||||||||||||
| - | - | (4,636 | ) | 3(t) | - | |||||||||||||
| Warranty liability, net of current portion | - | 2,090 | - | 2,090 | ||||||||||||||
| Operating lease liabilities, net of current portion (related party) | - | 467 | - | 467 | ||||||||||||||
| Warrant liability (related party) | - | 231 | (231 | ) | 3(k) | - | ||||||||||||
| Total liabilities | 21,238 | 62,299 | (65,973 | ) | 17,564 |
See accompanying notes to the unaudited pro
forma condensed combined financial information.
CONDENSED COMBINED BALANCE SHEET
| (In thousands, except for share data) | Anzu (Historical) | Envoy (Historical) | Transaction Accounting Adjustments | Notes | Pro Forma Balance Sheet | |||||||||||||
| Class A Common Stock subject to possible redemption at redemption value (4,312,774 shares at $10.34 per share) | 44,595 | - | (44,595 | ) | 3(i) | - | ||||||||||||
| Redeemable convertible preferred stock, $0.01 par value; 10,000,000 shares authorized 4,000,000 shares issued and outstanding | - | 19,973 | (19,973 | ) | 3(l) | - | ||||||||||||
| Stockholders' deficit: | ||||||||||||||||||
| Class B Common Stock, $0.0001 par value; 40,000,000 shares authorized; 10,625,000 shares issued and outstanding | 1 | - | (1 | ) | 3(d) | - | ||||||||||||
| - | - | - | ||||||||||||||||
| - | - | - | - | |||||||||||||||
| Envoy Common Stock, $0.01 par value; 232,000,000 shares authorized; 139,153,144 shares issued and outstanding | - | 1,392 | (1,392 | ) | 3(n) | - | ||||||||||||
| New Envoy Class A Common Stock, par value $0.0001 | - | - | - | 3(d) | 2 | |||||||||||||
| - | - | 1 | 3(i) | - | ||||||||||||||
| - | - | - | 3(j) | - | ||||||||||||||
| - | - | - | 3(k) | - | ||||||||||||||
| - | - | - | 3(l) | - | ||||||||||||||
| - | - | 1 | 3(n) | - | ||||||||||||||
| - | - | - | 3(q) | |||||||||||||||
| Series A Preferred Stock, par value $0.0001 | - | - | - | 3(d) | - | |||||||||||||
| - | 3(e) | - | ||||||||||||||||
| - | - | - | 3(f) | - | ||||||||||||||
| - | - | - | 3(t) | - | ||||||||||||||
| Additional paid-in capital | - | 171,528 | (940 | ) | 3(b) | 267,936 | ||||||||||||
| - | - | - | 3(c) | - | ||||||||||||||
| - | - | 1 | 3(d) | - | ||||||||||||||
| - | - | 10,000 | 3(e) | - | ||||||||||||||
| - | - | 2,918 | 3(f) | - | ||||||||||||||
| - | - | 10,413 | 3(g) | |||||||||||||||
| - | - | 625 | 3(h) | - | ||||||||||||||
| - | - | 19,635 | 3(i) | - | ||||||||||||||
| - | - | 48,458 | 3(j) | - | ||||||||||||||
| - | - | 19,973 | 3(l) | - | ||||||||||||||
| - | - | 1,391 | 3(n) | - | ||||||||||||||
| - | - | (20,791 | ) | 3(m) | - | |||||||||||||
| - | - | 4,636 | 3(t) | - | ||||||||||||||
| - | - | 89 | 3(q) | |||||||||||||||
| Accumulated deficit | (20,791 | ) | (252,484 | ) | (1,190 | ) | 3(b) | (269,926 | ) | |||||||||
| - | - | (6,900 | ) | 3(c) | - | |||||||||||||
| - | - | 2,906 | 3(j) | - | ||||||||||||||
| - | - | 231 | 3(k) | - | ||||||||||||||
| - | - | 20,791 | 3(m) | - | ||||||||||||||
| - | - | 145 | 3(o) | - | ||||||||||||||
| - | - | (11,192 | ) | 3(p) | - | |||||||||||||
| (1,442 | ) | 3(q) | ||||||||||||||||
| Accumulated other comprehensive loss | - | (115 | ) | - | (115 | ) | ||||||||||||
| Total stockholders' equity | (20,790 | ) | (79,679 | ) | 98,366 | (2,103 | ) | |||||||||||
| Total liabilities, redeemable stock, and stockholders' equity | $ | 45,043 | $ | 2,593 | $ | (32,175 | ) | $ | 15,461 |
See accompanying notes to the unaudited pro
forma condensed combined financial information.
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT
FOR THE SIX MONTHS ENDED JUNE 30, 2023
| Six Months Ended June 30, 2023 | Six Months Ended June 30, 2023 | Transaction | Pro Forma Statement | |||||||||||||||||
| (In thousands, except per share and weighted-average share data) | Anzu (Historical) | Envoy (Historical) | Accounting Adjustments | Notes | of Operations | Notes | ||||||||||||||
| Net revenues | $ | - | $ | 141 | $ | - | $ | 141 | ||||||||||||
| Operating cost and expenses: | ||||||||||||||||||||
| Cost of goods sold | - | 627 | - | 627 | ||||||||||||||||
| Research and development | - | 3,790 | - | 3,790 | ||||||||||||||||
| General and administrative | - | 3,975 | - | 3,975 | ||||||||||||||||
| - | - | - | - | |||||||||||||||||
| Formation and operating costs | 2,591 | - | - | 2,591 | ||||||||||||||||
| Total operating costs and expenses | 2,591 | 8,392 | - | 10,983 | ||||||||||||||||
| Operating loss | (2,591 | ) | (8,251 | ) | - | (10,842 | ) | |||||||||||||
| Other income (expense): | ||||||||||||||||||||
| Loss from changes in fair value of convertible notes payable (related party) | - | (18,143 | ) | 18,143 | 4(d) | - | ||||||||||||||
| Interest earned on investment held in Trust Account | 3,899 | - | (3,899 | ) | 4(a) | - | ||||||||||||||
| Other income (expense) | - | (105 | ) | 104 | 4(f) | (1 | ) | |||||||||||||
| Deferred offering cost forgiveness | - | - | - | - | ||||||||||||||||
| Change in fair value of Forward Purchase Agreements | (354 | ) | - | - | (354 | ) | ||||||||||||||
| Prepaid forward derivative | (145 | ) | - | 145 | 4(h) | - | ||||||||||||||
| Change in fair value of warrant liabilities | (267 | ) | - | 125 | 4(e) | (142 | ) | |||||||||||||
| Total other income, net | 3,133 | (18,248 | ) | 14,618 | (497 | ) | ||||||||||||||
| Income (loss) before income tax expense | 542 | (26,499 | ) | 14,618 | (11,339 | ) | ||||||||||||||
| Income tax benefit (expense) | (963 | ) | - | - | (963 | ) | ||||||||||||||
| Net income (loss) | (421 | ) | (26,499 | ) | 14,618 | (12,302 | ) | |||||||||||||
| Cumulative undeclared preferred dividends | - | (1,000 | ) | (7,100 | ) | 4(g) | (8,100 | ) | ||||||||||||
| Deemed dividend on Series A Convertible Preferred Stock | - | - | - | - | ||||||||||||||||
| Net income (loss) attributable to common stockholders, basic and diluted | $ | (421 | ) | $ | (27,499 | ) | $ | 7,518 | $ | (20,402 | ) | |||||||||
| Net loss per share attributable to common stockholders, basic and diluted | $ | (0.20 | ) | $ | (1.10 | ) | ||||||||||||||
| Weighted average common stock outstanding, basic and diluted | 139,153,144 | 18,549,992 | 4(k) | |||||||||||||||||
| Net income allocated to Class A Common stock | 265 | |||||||||||||||||||
| Basic and diluted net income (loss) per common stock, Anzu Class A common stock | $ | 0.01 | ||||||||||||||||||
| Weighted average number of Class A Common Stock, basic and diluted | 18,026,419 | |||||||||||||||||||
| Net income allocated to Class B Common stock | 155 | |||||||||||||||||||
| Basic and diluted net income (loss) per common stock, Anzu Class B common stock | $ | 0.01 | ||||||||||||||||||
| Weighted average number of Class B Common Stock, basic and diluted | 10,625,000 |
accompanying notes to the unaudited pro forma condensed combined financial information.
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2022
| Year Ended December 31, 2022 | Year Ended December 31, 2022 | Transaction | Pro Forma Statement | |||||||||||||||||
| (In thousands, except per share and weighted-average share data) | Anzu (Historical) | Envoy (Historical) | Accounting Adjustments | Notes | of Operations | Notes | ||||||||||||||
| Net revenues | $ | - | $ | 237 | $ | - | $ | 237 | ||||||||||||
| Operating cost and expenses: | ||||||||||||||||||||
| Cost of goods sold | - | 957 | - | 957 | ||||||||||||||||
| Research and development | - | 4,516 | - | 4,516 | ||||||||||||||||
| General and administrative | - | 3,470 | 1,565 | 4(b) | 5,035 | |||||||||||||||
| - | - | 6,901 | 4(c) | 6,901 | ||||||||||||||||
| Formation and operating costs | 4,888 | - | - | 4,888 | ||||||||||||||||
| Total operating costs and expenses | 4,888 | 8,943 | 8,466 | 22,297 | ||||||||||||||||
| Operating loss | (4,888 | ) | (8,706 | ) | (8,466 | ) | (22,060 | ) | ||||||||||||
| Other income (expense): | ||||||||||||||||||||
| Loss from changes in fair value of convertible notes payable (related party) | - | (7,090 | ) | 7,090 | 4(d) | - | ||||||||||||||
| Interest earned on investment held in Trust Account | 6,125 | - | (6,125 | ) | 4(a) | - | ||||||||||||||
| Other income (expense) | - | (127 | ) | (1,442 | ) | 4(j) | (12,530 | ) | ||||||||||||
| - | - | (11,192 | ) | 4(i) | ||||||||||||||||
| - | - | 231 | 4(f) | - | ||||||||||||||||
| Deferred offering cost forgiveness | 150 | - | - | 150 | ||||||||||||||||
| Change in fair value of Forward Purchase Agreements | (649 | ) | - | - | (649 | ) | ||||||||||||||
| Change in fair value of warrant liabilities | 19,997 | - | (9,374 | ) | 4(e) | 10,623 | ||||||||||||||
| Total other income, net | 25,623 | (7,217 | ) | (20,812 | ) | (2,406 | ) | |||||||||||||
| Income (loss) before income tax expense | 20,735 | (15,923 | ) | (29,278 | ) | (24,466 | ) | |||||||||||||
| Income tax benefit (expense) | (1,502 | ) | - | - | (1,502 | ) | ||||||||||||||
| Net income (loss) | 19,233 | (15,923 | ) | (29,278 | ) | (25,968 | ) | |||||||||||||
| Cumulative undeclared preferred dividends | - | (2,000 | ) | (3,400 | ) | 4(g) | (5,400 | ) | ||||||||||||
| Deemed dividend on Series A Convertible Preferred Stock | - | - | - | - | ||||||||||||||||
| Net income (loss) attributable to common stockholders, basic and diluted | $ | 19,233 | $ | (17,923 | ) | $ | (32,678 | ) | $ | (31,368 | ) | |||||||||
| Net loss per share attributable to common stockholders, basic and diluted | $ | (0.13 | ) | $ | (1.69 | ) | ||||||||||||||
| Weighted average common stock outstanding, basic and diluted | 139,162,385 | 18,549,992 | 4(k) | |||||||||||||||||
| Net income allocated to Class A Common stock | 15,387 | |||||||||||||||||||
| Basic and diluted net income (loss) per common stock, Anzu Class A Common Stock | $ | 0.36 | ||||||||||||||||||
| Weighted average number of Class A Common Stock, basic and diluted | 42,500,000 | |||||||||||||||||||
| Net income allocated to Class B Common Stock | 3,846 | |||||||||||||||||||
| Basic and diluted net income (loss) per common stock, Anzu Class B Common Stock | $ | 0.36 | ||||||||||||||||||
| Weighted average number of Class B Common Stock, basic and diluted | 10,625,000 |
accompanying notes to the unaudited pro forma condensed combined financial information.
NOTES TO UNAUDITED PRO
FORMA CONDENSED COMBINED FINANCIAL INFORMATION
The unaudited pro forma condensed
combined financial information was prepared in accordance with Article 11 of SEC Regulation S-X, as amended by the
final rule, Release No. 33-10786, Amendments to Financial Disclosures about Acquired and Disposed Businesses. Release
No. 33-10786 replaces the historical pro forma adjustments criteria with simplified requirements to depict the accounting for
the transaction ("Transaction Accounting Adjustments") and present the reasonably estimable synergies and other transaction
effects that have occurred or are reasonably expected to occur ("Management's Adjustments"). Management has elected
not to present Management's Adjustments and will only be presenting Transaction Accounting Adjustments in the unaudited pro forma
condensed combined financial information. The adjustments presented in the unaudited pro forma condensed combined financial information
have been identified and presented to provide relevant information necessary for an understanding of New Envoy upon consummation of the
Transactions. The unaudited pro forma condensed combined financial information does not give effect to any anticipated synergies, operating
efficiencies, tax savings, or cost savings that may be associated with the Business Combination. Anzu and Envoy had not had any historical
relationship prior to the Business Combination. Accordingly, no pro forma adjustments were required to eliminate activities between the
The unaudited pro forma condensed
combined financial information has been prepared based on the Anzu and Envoy historical financial statements as adjusted to give effect
to the Transactions. The unaudited pro forma condensed combined balance sheet as of June 30, 2023 gives pro forma effect to the
Transactions as if they had occurred on June 30, 2023. The unaudited pro forma condensed combined statement of operations for the
six months ended June 30, 2023, and the year ended December 31, 2022, give effect to the Transactions as if they had occurred on
The pro forma adjustments
reflecting the consummation of the Transactions are based on certain currently available information and certain assumptions and methodologies
that each of Anzu and Envoy believes are reasonable under the circumstances. The pro forma adjustments, which are described
in the accompanying notes, may be revised as additional information becomes available and is evaluated. Therefore, it is likely that the
actual adjustments will differ from the pro forma adjustments, and it is possible the differences may be material. Each of Anzu and
Envoy believes that its assumptions and methodologies provide a reasonable basis for presenting all the significant effects of the Transactions
based on information available to management at this time and that the pro forma adjustments give appropriate effect to those assumptions
and are properly applied in the unaudited pro forma condensed combined financial information.
The unaudited pro forma
condensed combined financial information has been prepared based on actual redemptions of 2,386,294 shares of Anzu Class A Common
Stock based on a redemption price of $10.46 per share, or approximately $25.0 million in the aggregate as of September
27, 2023, the purchase of 425,606 shares by the Seller under the Forward Purchase Agreement, resulting in an aggregate cash payment of
approximately $4.5 million out of the Trust Account, the issuance of additional 2% Share Consideration under the Forward Purchase Agreement, and the consummation of the PIPE
Transaction and the Envoy Bridge Financing.
NOTES TO UNAUDITED PRO
FORMA CONDENSED COMBINED FINANCIAL INFORMATION
closing of the Business Combination, shares outstanding as presented in the unaudited pro forma condenses combined financial statements
include the following:
| Number of Common Shares Owned | Number of Preferred Shares Owned | Number of Preferred Shares as converted to Common Stocks | % Common Ownership | % Ownership (as converted) | ||||||||||||||||
| (Shares in thousands) | ||||||||||||||||||||
| Envoy shareholders | 15,000 | - | - | 80.9 | % | 66.8 | % | |||||||||||||
| Anzu-Affiliated PIPE Investors | - | 1,000 | 870 | 0.0 | % | 3.9 | % | |||||||||||||
| Envoy Bridge Note Holders | - | 1,000 | 870 | 0.0 | % | 3.9 | % | |||||||||||||
| Anzu stockholders | 1,501 | - | - | 8.1 | % | 6.7 | % | |||||||||||||
| Anzu Sponsor | 1,000 | 2,500 | 2,174 | 5.4 | % | 14.1 | % | |||||||||||||
| Meteora Parties** | 534 | - | - | 2.9 | % | 2.4 | % | |||||||||||||
| Other Parties* | 515 | - | - | 2.8 | % | 2.3 | % | |||||||||||||
| Total | 18,550 | 4,500 | 3,914 | 100 | % | 100 | % |
number of shares of Series A Preferred Stock as converted to shares of New Envoy Class A Common Stock and as converted ownership percentage
in the above tables assume that the Series A Preferred holders converted their shares into shares of New Envoy Class A Common Stock based
on the ratio determined by dividing the Original Issuance Price of $10.00 by the Conversion Price of $11.50 pursuant to the Certificate
total number of shares does not include (a) shares issuable upon the exercise of 14,166,666 public warrants to purchase shares of Anzu
Class A Common Stock on a one to one basis, which remain outstanding immediately following the Business Combination, (b) 1,000,000 shares
of Contingent Sponsor Shares which are unvested and subject to forfeiture upon the Closing and will vest upon the FDA approval of the
Acclaim, (c) the issuance of shares upon completion of the Business Combination under the New Envoy Incentive Plan, and (d) any increase
or decrease in the shares of Anzu Common Stock that will be issued to as a result of the adjustments to the Merger Consideration pursuant
to the terms of the Business Combination Agreement.
the legal form, the Business Combination will be accounted for as a reverse recapitalization in accordance with GAAP. Under this method
of accounting, Anzu will be treated as the acquired company for accounting purposes, whereas Envoy will be treated as the accounting
acquirer. In accordance with this method of accounting, the Business Combination will be treated as the equivalent of Envoy issuing shares
for the net assets of Anzu, accompanied by a recapitalization. The net assets of Anzu will be stated at historical cost, with no goodwill
or other intangible assets recorded, and operations prior to the Business Combination
will be those of Envoy. Envoy has been determined to be the accounting acquirer for purposes of the Business Combination based on an
evaluation of the following facts and circumstances: